Oslo, Norway, 31 October 2016
Norwegian pharmaceutical company Vistin Pharma ASA (OSE: VISTIN) recorded an EBITDA of 7.3 million, taking the result year to date to NOK 31.0 million. Vistin Pharma's metformin plant has been running at full capacity for several quarters, and in August, the Company decided to invest in a major capacity expansion. This will double the Company's metformin production capacity, effective from 2019.
"I am pleased to report on another good quarter for Vistin Pharma. While we are pleased with our current performance, we are constantly looking to improve. The decision to invest in a doubling of our metformin production capacity is an important milestone that will secure significant growth starting 2019. In the meantime, we will secure continued growth through operational excellence programs both within our metformin and finished dose contract manufacturing business," says CEO Kjell-Erik Nordby.
The 3,000 metric tonnes capacity expansion in Kragerø will require an investment of approximately NOK 120 million. The new production line is expected to be fully operational in 2019. The investment will be financed through a combination of existing cash reserves, cash generation and debt.
Within opioids, the Company recorded a slight drop in revenue to NOK 18.6 million (NOK 20.2 million), reflecting continued price pressure in the market. Despite continued challenging market conditions, Vistin Pharma is experiencing an increase in demand from several key customers. The Company's contract manufacturing (CMO) business recorded NOK 30.8 million in revenue, up from NOK 27.7 million in the third quarter of 2015. The operational excellence program within the CMO business is running according to plan. This is expected to show results in 2017, both through cost savings and higher production capacities.
Vistin Pharma recorded an overall revenue of NOK 88.2 million in the third quarter. Reported EBITDA was NOK 7.3 million, while the net profit came in at NOK 4.3 million. The Company's financial position remains strong, with net cash of NOK 72.7 million as of 30 September. Vistin Pharma has no interest-bearing debt.
Vistin Pharma will give a presentation today at 08:30 CET at Carnegie AS, Grundingen 2, Oslo, Norway. CEO Kjell-Erik Nordby and CFO Gunnar Manum will represent the Company. The presentation will be webcast live and can be accessed directly from http://webtv.hegnar.no/presentation.php?webcastId=40095826 , or http://www.vistin.com/investors/webcast-article214-455.htm .
Please find the report and presentation for the third quarter 2016 enclosed. The report and presentation will also be made available on www.vistin.com .
For further information, please contact:
+47 91 36 42 80
+47 95 17 91 90
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Note: Vistin Pharma ASA was established in February 2015, and the Group had no operating activities prior to Vistin Pharma AS' acquisition of the B2B business and tablet production assets from Weifa AS on 1 June 2015.
About Vistin Pharma
Vistin Pharma is a Norwegian pharmaceutical company producing Active Pharmaceutical Ingredients (APIs) and solid dosage forms for the global pharmaceutical industry. The Company has key positions in the Metformin and Opioids markets, and a strong foundation for creating a highly efficient Contract Manufacturing tablet production (CMO) business. Solid growth potentials exist in all the business segments.
With more than 65 years of pharmaceutical industry experience, Vistin Pharma has built significant capacity and expertise as an API provider. The Company has more than 140 highly qualified employees and two manufacturing facilities in Kragerø, Norway. Both facilities are certified according to current Good Manufacturing Practice (cGMP) and successfully inspected by the US Food and Drug Administration (FDA) in 2014. Vistin Pharma's headquarter is in Oslo, Norway.